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The Nederland Terminal

Our Nederland Terminal is located on the U.S. Gulf Coast, on the Sabine-Neches waterway between Beaumont and Port Arthur, TX. Nederland is a large marine terminal that provides inventory management, storage, and distribution services for refiners and other large end-users of crude oil. The Nederland Terminal receives, stores, and distributes crude oil, feedstocks, lubricants, petrochemicals, and bunker oils (used for fueling ships and other marine vessels). In addition, the Nederland Terminal also blends and packages lubricants and is equipped with petroleum laboratory facilities.

Storage capacity:

The Nederland Terminal has a total storage capacity of approximately 12.5 million barrels in 128 aboveground storage tanks with individual capacities of up to 660,000 barrels.

U.S. Department of Energy pipelines connect the Nederland Terminal to the United States Strategic Petroleum Reserve's West Hackberry caverns at Hackberry, LA and Big Hill caverns near Winnie, TX, which have an aggregate storage capacity of 370 million barrels.

On April 25, 2006, we announced that there are currently eight tanks presently planned or under construction at Nederland. This will result in a 32% increase in total storage capacity from 12.5 million shell barrels currently to 16.5 million shell barrels by the third quarter 2007.

Receiving:

The Nederland Terminal can receive crude oil at each of its five ship docks and three barge berths, which can accommodate any vessel capable of navigating the 40-foot freshwater draft of the Sabine-Neches Ship Channel. The five ship docks are capable of receiving over 1.0 million barrels per day of crude oil. The terminal can also receive crude oil through a number of pipelines, including our Western Pipeline System.

Delivery:

The Nederland Terminal's pipeline connections to major markets in the Lake Charles, Beaumont, Port Arthur, Houston, and Midwest areas provide customers with maximum flexibility and liquidity. The Nederland Terminal can deliver crude oil and other petroleum products via pipeline, barge, ship, rail, or truck. Nederland Terminal is capable of delivering over 1.0 million barrels per day of crude oil to 12 connecting pipelines.

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